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NCR Boosts Financial Services Biz - Analyst Blog

In a bid to strengthen its financial services business,
NCR Corp.
(
NCR
) announced its definitive agreement to acquire Digital Insight
Corp. for a purchase consideration of $1.65 billion. NCR also
closed the acquisition of Alaric Systems Ltd, a provider of fraud
prevention solutions, for a purchase price of $84.0 million. Both
the acquisitions will be accretive to its 2014 earnings.

Digital Insight Corp., a provider of online and banking
solutions, complements NCR's existing business, while increasing
its capabilities. The acquisition will enable NCR to provide a
unique customer experience across mobile, bill pay and online
banking channels in addition to the ATM service it already
provides.

The merger of Alaric Systems Ltd will help to reduce
complexities in managing ATM, point of sale, e-commerce and
mobile payment or banking transactions. It will simplify
transactions by providing privacy and protection of information,
thereby reducing the risk of maintaining large data volumes.

The company remains the largest supplier of ATM machines in North
America while maintaining its leadership in Asian and European
markets. According to the latest research by RBR Research, the
global installed base of ATMs is expected to increase 44%
from2012 to 2018, fueled by increased demand in Russia and the
emerging economies of the Asia-Pacific, the Middle East and
Africa.

Apart from this, NCR has strengthened its position in the POS
market through the acquisition of Radiant Systems. It also
strengthened its hardware-enabled, software-driven business model
through the acquisition of Retalix, which helped it to offer
advanced solutions to enhance customer satisfaction.

NCR Corporation is a global technology company and a world leader
in consumer transaction technologies. However, softness in its
ATM business in the mature markets, competition from
Diebold Corp.
(
DBD
) and
IBM Corp.
(
IBM
), European exposure and a high debt burden are concerns.

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